Ronald Reagan Presidential Library Digital Library Collections This is a PDF of a folder from our textual collections. Collection: Roberts, John G.: Files Folder Title: JGR/DOT (Department of Transportation) International Aviation Decisions (8 of 10) Box: 17 To see more digitized collections visit: https://reaganlibrary.gov/archives/digital-library To see all Ronald Reagan Presidential Library inventories visit: https://reaganlibrary.gov/document-collection Contact a reference archivist at: [email protected] Citation Guidelines: https://reaganlibrary.gov/citing National Archives Catalogue: https://catalog.archives.gov/ THE WHITE HOUSE WASHINGTON March 4, 1986 MEMORANDUM FOR MATTHEW V. SCOCOZZA ASSISTANT SECRETARY FOR POLICY AND INTERNATIONAL AFFAIRS DEPARTMENT OF TRANSPORTATION FROM: JOHN G. ROBERTS ~#,/ / , , ASSOCIATE COUNSB'L TO Ttrn PRESIDENT SUBJECT: Department of Transportation International Aviation Decision: Nippon Cargo Airlines Company, Ltd. The attached correspondence is referred to you pursuant to Section 4 of Executive Order 11920. That provision directs individuals within the Executive Office of the President to "follow a policy of ••• referring any written communication from an interested private party [under section 801}, or an attorney or agent for any such party, to the appropriate department or agency outside the Executive Office of the President." Mr. Hart telephoned me about the application of Nippon Cargo Airlines, with which I was unfamiliar. I advised Mr. Hart that if the matter were a Section 801 case, the Executive Order would prohibit me from discussing it with him. Shortly thereafter, I received this correspondence. I have advised Mr. Hart that, pursuant to Section 4 of the Executive Order, future contact should be nonexistent, not "minimal." WILLIAMS & JENSEN PAUL ARNESON A PROFESSIONAL CORPORATION GEORGE D. BAKER LAWYERS WILLIAM T. BRACt'. ANN S COSTELLO 1101 CONNECTICUT AVENUE. N.W 'WINFIELD P. CRIGLER . ·'TELEPHONE: .JUNE E EDMONDSON WASHINGTON, D.C. 20036 "ROBERT E. GLENNON (202) 659·820' J. STEVEN HART ROBERT E . .JENSEN February 25, 1986 JOHN J. MCMACKIN, .JR. GEORGE G. OLSEN MARY LYNNE WHALEN J. D. WILLIAM$ John G. Roberts, Jr., Esquire Associate Counsel to the President 112 Old Executive Office Building Washington, D. c. 20500 Dear John: You were correct. The Nippon Cargo Airlines (NCA) application falls under section 801. Apparently, the NCA issue had not made it to your desk. I enclose a copy of the Department of Transporta­ tion decision and a recent news article reflecting Japan's strong interest in a prompt resolution of this issue. A Japanese delegation will arrive here on March 3 and hopes to be greated with good news. I thought you might be interested. Due to the 801 restrictions and the fact that our client, NCA, is a foreign corporation, I will keep future contact minimal. JSH/ajb Enclosures The Journal of Cormnerce, Friday, February 7, 1986 • Naliasone Seelis Reagan's Aid Ill Tallis By A.E. CULLISON Japanese who, since 1970, have in· made too manv concessions to the sisted that JAL be the sole designat- ' United States during recent negotia· TOKYO - President Ronald ed carrier for Japan. ' , tions. Particularly disturbing to Reagan has been sent a pel"'SOnal let· The Japanese have been com­ many Japanese has been the Naka­ ter bv Prime Minister Ya.suhiro Na­ plaining as well that JAL's beyond sone government's permission for kasone seeking his assistance in ob­ routes are too limited at a time United Airlines to take "4>Ver ~u the taining key concessions for Japan when the U.S. airlines themselves rights now owned by Pan American during the civil aviation talks scbed· enjoy freedom in principle on routes World Airways' trans-Pacific divl· uled to open on March 3. involving Japan. sion. These rights were purchased by Government officials in Tokvo Japan's negotiators have been United, including stopovers beyond disclosed Thursday that Mr. Naka· pressing the United States to agree Japan. sone appealed to President Reagan to permit JAL to fly to South Ameri· for an increase in the number of can destinations after stopping in United also has been granted the flights permitted to Nippon Cargo New York and Los Angeles. right to fly 53 flights weekly on Airlines on routes to the United trans-Pacific routes, more than the States and to allow Japan Air Lines It is expected that negotiators 33 nights currently provided by Pan to launch freight service to Chicago. from the two nations will launch American, from February 11, and 56 According to tbe Japanese offi­ working-level discussions in Tokyo flights from April 28. cials. the Prime Minister also asked on Monday to deal with U.S. requests President Reagan to use his influ­ that Japan simplify customs proce­ From the Japanese point of view. ence to see that the U.S. negotiators dures at Japanese airports and that these concessions will place Japan's agree to end the alleged disparity in control..; on night landings at Narita airlines at a competitive disadvan­ the number of designated companies and Osaka airports be eased. tage. But it is understood that Secre­ tary of State George P. Shultz has permitted to schedule their own However, it is likely that the Jap­ number of flights. promised that the United States will anese Prime Minister is counting on In addition, Mr. Nakasone's letter make positive efforts to eliminate President Reagan's help in seeing requested the president to support the current imbalance in the number that the Japanese arguments are al­ Japan's efforts to obtain a revision of nights between the two countries. so placed on the table in preparation of tbe beyond rights issue between for further consideration when the . the two countries. Prime•Minister Nakasone's letter talks get down to other matters in to Mr. Reagan is considered in Under the present bilateral civil March. aviation pact, JAL, the Japanese Tokyo as a move to settle the il'>sues flag carrier, is the only designated Japan's prime minister has been on a political level rather than to airline from Japan allowed to oper­ under increasing pressures from his leave the problem to the bureau­ ate its own number of flights. In own civil aviation authorities and crats. The official U.S. position for contrast, three U.S. airlines are des­ from high-level members of his rul· years has been that tbe present civil ignated carriers. But the U.S. author­ ing Liberal Democratic Party. who aviation agreement between Wash· ities have pointed out that it was the believe that his administration has ington and Tokyo is not unbalanced. UNITED STATES OF A~ERICA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D•• C. - - -- -- - - - - - - - --- - NIPPON CARGO AIR.i.iNESCOOAi.~., t Docket 42023 ~ NOTICE The attached decision was submitted to the President pursuant to section 801 of the Federal Aviation Act on February 6, 1986. Public release has been authorized in accordance with the provisions of Executive Order 11920, 41 Fed. Reg. 23665 (June 10, 1976). This is not a final decision since it has not been acted upon by the President. By: PHYLLIS T. KAY1..0R Chief, Documentary Services Division (SEAL) ..... UNITED STATES OF AMER!tA DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D. C. Issued by the Department of Transportation on the 6th day of February, 1986 Application of NIPPON CARGO AIRLINES COMPANY, LTD. Docket 42023 for a foreign air carrier permit pursuant: to section 402 of the Federal Aviation Act of 1958, as amended ORDER ISSUING FOREIGN AIR CARRIER PERMIT On February 29, 1984, Nippon Cargo Airlines Company, Ltd. (NCA) filed with the Civil Aeronautics Board an application for an initial foreign air carrier permit'!...! to engage in scheduled all-cargo services . commencing April 1, 1985, (1) between a point or points in Japan and the coterminal points San Francisco and New York, and (2) between a point or points in Japan and the terminal point New York, New York, via the intermediate point Anchorage, Alaska. 2; NCA further requested authority to perform cargo charters in accordance with 14 CFR Part 212. In support of its application, NCA stated that it has been licensed by its government to perform the all-cargo services at issue here, and, by Diplomatic Note dated November 16, 1983, was designated by the Government of Japan in accordance with !rticle 4(A){l) of the United States-Japan Air Transport Services Agreement, as amended. '!./ ll NCA 1s application was summarized in the Federal Register, 49 FR 9244, March 12, 1984. 2/ On April 9, 1984, NCA amended its application, defining its request Tor Anchorage intermediate authority as a technical stop. 3/ TIAS 2854, 4158, 5939, 6787, 7333 and 8882. 2 ANSWERS During March. 1984, Federa1 Express Corporation, The F1ying Tiger Line Inc., and Transamerica Airlines, Inc-. filed.answers in response to NCA 1 s permit application. The carriers urged deferral of .~CA 1 .s a.p.pli~c,a_tio.n._ pending resolution of various aviation issues with Japan. Federal Express and Flying Tiger also expressed concerns about possible antico~etiti ve consequences of NCA 's ownership. Specifically, Federal Express argued that action on NCA 1 s application should be deferred pending the concurrent grant of al I-cargo authority to Federal Express or unti1 an indication of willingness by the Government of Japan to grant such authority to Federa1 Express. Flying Tiger listed (1) Japanese domination of the air freight market, and the likelihood that NCA's entry would increase Japan's market stiare. and, (2) the fact that NCA 1s application cannot be considered independent of Japan Air Lines 1 request for expanded cargo rights into and beyond the U.S. Transamerica stated that it had no objection to NCA 1s application provided the U.S.